“In this case, the petitioner has been held for 23 months, and pre-trial detention cannot be used as punishment without the trial starting. The fundamental principle of bail as the norm and jail as the exception would be undermined if the petitioner remains incarcerated without the trial beginning,” the Court stated.
NEW DELHI: On Monday(2nd Sept): The Supreme Court granted bail to Vijay Nair, the Aam Aadmi Party’s communications-in-charge, who is accused in the money laundering case linked to the Delhi excise policy scandal.
READ ALSO: Excise Policy ‘Scam’: Apex Court to Hear Vijay Nair’s Bail Plea on Aug 27
Justices Hrishikesh Roy and SVN Bhatti noted that the Enforcement Directorate (ED) had failed to complete the trial despite promises to the Court.
“When Manish Sisodia’s case was taken up by this Court, the ED assured that the trial would be concluded within 6 to 8 months. However, the trial has yet to begin. Despite the ED’s assurance on 30/10/23, stating the trial would conclude within 6 to 8 months, there are now 40 accused, and approximately 350 witnesses need to be examined,”
the Court observed.
The Court also remarked that Nair has been in custody for 23 months, stating that pre-trial detention should not serve as a form of punishment.
“In this case, the petitioner has been held for 23 months, and pre-trial detention cannot be used as punishment without the trial starting. The fundamental principle of bail as the norm and jail as the exception would be undermined if the petitioner remains incarcerated without the trial beginning,”
the Court stated.
Around 350 witnesses still need to be examined. The Court observed that while the ED had assured the trial would conclude within 6 to 8 months, the case is still pending, and 40 individuals are now accused.
The Court highlighted that Nair has been in custody for 23 months, stating that pre-trial detention should not be used as punishment. The Court emphasized that bail should be the norm and imprisonment the exception if the trial has not yet begun.
Section 19 of the PMLA grants the ED the authority to arrest individuals if it has reason to believe they are guilty of money laundering. The accused must be informed of the grounds for arrest “as soon as may be.”
The position was further clarified in Pankaj Bansal v. Union of India (2023), where the court highlighted the fundamental right of the accused under Article 20 of the Constitution to be informed of the grounds for their arrest.
The Supreme Court ruled that written grounds of arrest must be provided “as a matter of course and without exception,” declaring any arrest without such communication illegal and invalid.
On August 9, the Supreme Court granted bail to former Delhi Deputy Chief Minister Manish Sisodia in the Delhi excise policy case.
The bench, consisting of Justices B R Gavai and K V Viswanathan, addressed the stringent “twin conditions” under Section 45 of the PMLA, which require the accused to prove their innocence and demonstrate that they are unlikely to reoffend.
The Court ruled that these conditions could be relaxed for individuals who have faced prolonged detention without trial, as was the case with Sisodia, who had been held for 17 months.
Nair, who was initially denied bail by the Delhi High Court in July last year, had appealed to the Supreme Court through advocate Binisa Mohanty. He had previously been granted bail in the related CBI case in November 2022.
The case involves allegations that Delhi government officials manipulated the excise policy to benefit certain liquor traders in exchange for bribes. The ED and the CBI opened investigations following a recommendation by Delhi Lieutenant Governor VK Saxena, based on a report by the Delhi Chief Secretary.
Who is Vijay Nair?
Vijay Nair, the former communication in-charge of the Aam Aadmi Party (AAP), is one of the accused in a case concerning alleged irregularities in the now-canceled 2021-22 excise policy. According to sources, Nair began as a part-time volunteer for AAP before the 2020 Delhi Assembly elections, managing the party’s social media communications and marketing.
Nair previously served as the CEO of the entertainment and events management company Only Much Louder (OML), as reported by media. An entrepreneur who dropped out of college, Nair founded OML in Mumbai. The company became known for organizing the NH7 Weekender concerts, promoting independent artists, and fostering comedy groups like East India Comedy and All India Bakchod.
However, during the 2018 Me Too Movement, Nair faced allegations of sexual misconduct and harassment while leading OML. He was accused of creating an environment that enabled sexual harassment, with claims including inappropriate advances and comments towards women.
Nair’s business ventures were significant, and in 2014, he was managing a company worth $10 million. He was also recognized on Fortune India’s 40 under 40 list in 2016.
Charges against Vijay Nair
In November 2022, Nair was arrested by the Central Bureau of Investigation (CBI) over allegations of involvement in the excise policy scam, in which he allegedly accepted bribes from a liquor firm owner. While he was granted bail in the CBI case, he remained in custody under charges from the Enforcement Directorate (ED). He briefly received interim bail on medical grounds in January 2023, but he is currently back in jail.
The CBI’s FIR implicated Nair alongside other figures such as Manoj Rai, a former employee of Pernod Ricard; Amandeep Dhal, owner of Brindco Spirits; and Sameer Mahendru, owner of Indospirit. These individuals were reportedly involved in corruption related to the formulation and execution of the excise policy. Following his arrest, AAP confirmed in a press release that Nair had overseen communication strategies for the party, first in Punjab and later in Gujarat.
Case Title: Vijay Nair vs Directorate of Enforcement
